Eric Mhunduru
The minister of industries, mines and energy, Modestus Amutse says they expect the Dangote Industries group to install fuel injection pipes at their site in Walvis Bay, before the end of this year.
In an interview with Future Media’s business report last week, Amutse said they are busy reviewing certain Dangote Industries group agreements, regarding the connection to the national jetty.
He said they will have pipes that will be used to inject fuel from their vessels to their storage facility.
“I should say, I have observed and I have engaged with them several times. We had meetings, planning the way forward and then briefing the ministry as to the progress, and they are doing well.”
“Actually, they have already acquired the land that they needed to start putting up the infrastructure. And where we are now, we are busy reviewing certain agreements with them regarding the connection to our national jetty, because they have to have pipes that would be used to inject fuel from the vessels to their storage facility and so on.”
“It is quite a lengthy process, but the good of it is that we are understanding each other and the progress so far, I am satisfied with.”
“Actually, this year, we may already see maybe the first 10 or 2 or 3 being installed at their site, because the site was the most important thing, but now they are done with it. So, it’s a matter of, and they have already set up a calendar of events. I see progress with those timeframes,” said Amutse.
He said the Dangote Industries group coming into the Namibian market will be beneficial through employment creation, security of fuel supply not only for the locals but for the SADC region at large.
However, Amutse could neither disclose the supply model the oil company will implement once operational nor the extent its presence will have on the regional fuel prices.
“What it means to the economy of Namibia is in many folds and one of it being employment creation, but one of it also being to an extent attending to the security of fuel supply, but I, at the moment, cannot anticipate the prices because like I say, prices are something that are informed by the market.
“Depending on how the market will be at that stage, to determine whether the price of fuel will become lower than now or increase, I am not sure, but the anticipation is that, of course, once they are here, they will eventually supply SADC because the focus of Dangote is not necessarily Namibia.
“It is more about SADC. The supply model will be designed once they have established themselves in the Republic of Namibia, which model we will inform the public about, but at the moment, I think it is too premature if we have to go into detail about how they will trade at which price and so on because the focus now is them establishing themselves,” he said.
The Dangote Industries group announced its intentions to invest about N$2.4 billion to establish a tank farm at Walvis Bay, primarily for the regional market.
FUTURE MEDIA
COMMENTS